MENDHAM, N.J. –The U.S. structural pest control industry generated an estimated $6.524 billion in total service revenue in 2011, a 3.4 increase from the $6.307 billion measured in 2010. The top three U.S. service providers, Orkin, Terminix, and Ecolab, represented 40.0% of the total industry revenue for the termite and general pest market segments this past year.
Service revenue derived from controlling bed bugs grew 28.2% from the prior year, bringing the total revenue earned to $409 million. The 5-year CAGR for bed bug service revenue is 33.1%. Single family homes and apartments were the primary leading types of accounts pest control operators treated for bed bugs. Hotels and motels ranked as the third leading type of account with more than ten percent of the pest control operators mentioning them.
Slightly more than one-quarter of those servicing accounts for bed bugs report employing a monitoring device as part of their service. Nationwide, PCOs reported an average charge for a bed bug treatment of nearly $600.00. The average charge was highest in the Northeast and lowest in the West region. The median charge nationwide was $480.00 for a bed bug treatment.
Nationwide, pest control operators reported good growth in both residential (+3.5%) and commercial (+5.2%) service revenue over the prior year. Total service revenue generated from termite work, including renewal fees, was unchanged from that measured in the 2010 market study.
One-third of the pest control operators surveyed reported using social media to advertise and promote their pest control business. Facebook, LinkedIn, and Twitter were the leading social media platforms respondents used.
Total manufacturer level revenue increased 3.8% this past year. This is the second year of manufacturer level sales growth following the 2007-2009 recession.
More than 800 owners or managers of pest control companies were interviewed for this study. The market report forecasts pest control service revenue through 2013 and corresponding pesticide product category sales through 2016. The impact of the commercial and residential real estate market, mosquito and wildlife management services, changes in distribution, and pest control operators’ expectations for 2012 are just a few of the topics analyzed in this year’s report.
Specialty Products Consultants, headquartered in Mendham, N.J., is a leading provider of market research studies to the specialty pesticide industry. SPC clients include a significant majority of the leading suppliers serving the professional pest control market. SPC has built a solid reputation for providing timely, high quality research that marketers can depend on for accurate measurement and thought provoking strategic analysis. The 2011 season market report is the 12th edition of A Strategic Analysis of the U.S. Structural Pest Control Industry.